AUGUSTA — A proposed new agreement for the city to run the state-owned Augusta State Airport for another five years goes to the City Council for discussion Thursday.

The contract would pay the city $550,000 a year to run the airport, the same amount it has received per year for at least the last six years under two previous agreements.

The contract specifies that if $550,000 a year isn’t enough to cover the city’s expenses in running the airport during the agreement, the city can notify the state to seek a budget adjustment. If the state can’t or won’t increase funding enough to cover anticipated expenses, either the city or state has the right to terminate the agreement.

The contract specifies, “Under no circumstances shall the city be obligated to fund any such budget adjustment.”

“Absolutely nothing (is different). It’s identical to the agreement the city signed three years ago other than the state asking for a longer term, a five-year-term,” Airport Manager John Guimond said. “We will see what the council prefers.”

The previous agreement expired June 30. The city and the state agreed to extend the expired agreement for 60 days to give the parties time to consider the proposed new agreement.

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Guimond noted the $550,000 a year from the state is for operating expenses, and the state also participates in funding capital projects, such as airport improvements, separately. Federal grants also have paid for major improvements at the airport, such as the $7.5 million 2012 reconstruction of the main, 5,100-foot runway.

The city also contributes to running the airport with city employee time, including processing the payroll for airport employees.

The city has run the airport via various agreements with the state since at least 1997.

The airport serves private planes as well as daily commercial flights to and from Boston by Cape Air, and it is the long-time home of fixed base operator Maine Instrument Flight, which has a long-term lease at the airport and provides flying lessons, charter flights and services to other pilots and planes.

Councilors are scheduled to discuss the proposed new airport agreement at their meeting at 6:30 p.m. Thursday in council chambers at Augusta City Center. Councilors are also scheduled to:

• discuss a proposal to have a spring leaf collection;

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• discuss what to do with five tax-acquired properties owned by the city at 97 Bog Road, 9 Patterson St., 323 Bolton Hill Road, 110 Northern Ave. and a lot on Lone Indian Trail;

• hear an update from City Manager William Bridgeo on natural gas installation in the city;

• discuss Augusta Downtown Alliance requests to hold a block party with a beer garden Aug. 15 and to have a new traffic island on Green Street landscaped.

Keith Edwards — 621-5647

kedwards@centralmaine.com

Twitter: @kedwardskj

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